HERSHEY, Pa. (
) -- The latest in the
is preparing a counteroffer to
hostile bid of $16.5 billion to $17 billion for the U.K. confectionary maker, a report says.
Hershey has authorized a bid for Cadbury and a formal offer could be made before a Jan. 23 deadline, the
reports, citing people familiar with the matter.
It has previously been reported that
, with Cadbury even providing guidance on what price would draw support.
Cadbury, which has called Kraft's offer "derisory" and "unattractive," has made it clear it prefers a bid from Hershey.
Cadbury Chairman Roger Carr has told the
that Hershey is "more appealing" from a cultural view but would have to offer a higher price than Kraft's offer to gain Cadbury's support.
says Hershey would authorize Byron Trott, a former
banker who runs his own investment firm, to attract private equity investors to the deal. Also, the Hershey Trust is preparing to make an equity investment of $1.25 billion. The deal also would include the issuance of debt, which would be necessary for a bid in the range of Cadbury's asking price.
-- Written by Joseph Woelfel in New York.
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